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The monthly record in ETF inflows was insufficient to lift Ether’s price past the $3,500 resistance, which would trigger over $1 billion worth of leveraged short liquidations.
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Ether exchange-traded funds (ETFs) hit a new monthly record in December despite the holiday illiquidity, bolstering analyst expectations of an incoming rally.
The United States spot Ether (ETH) exchange-traded funds (ETFs) reached a new monthly record, surpassing $2.1 billion worth of cumulative net inflows during December.
December’s $2.1 billion worth of inflows is nearly double that of November, when the ETH ETFs received just over $1 billion worth of cumulative net inflows, Farside Investors data shows.
Ethereum ETF Flow (USD. million). Source: Farside Investors
ETH ETFs surpassed $2.5 billion in cumulative net inflows on Dec. 24, five months after they debuted for trading on July 23, 2024, Cointelegraph reported.
Despite the record inflows, Ether is unable to escape its current downtrend. Ether price is down 8.4% on the monthly chart, trading at $3,353 as of 9:54 am in UTC, according to data from Cointelegraph Markets Pro.
ETH/USD, 1-month chart. Source: Cointelegraph
However, some traders are capitalizing on Ether’s downtrend. A savvy crypto trader was up over $1.1 million on his 50x leveraged Ether position in just 2 days after taking a short position on Ether, which effectively bets on its price decline.
Growing ETF inflows are an optimistic sign for Ether’s price trajectory for the next year, further bolstering the predictions of asset management giant VanEck, which foresees a $6,000 ETH cycle top during 2025.
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Can Ether cross $3.5k despite $1B in cumulative shorts?
The $3,500 price level continues to act as a significant resistance for the world’s second-largest cryptocurrency.
A potential Ether rally above $3,500 would liquidate over $1 billion worth of cumulative leveraged short positions across all crypto exchanges, CoinGlass data shows.
Ether exchange liquidation map chart. Source: CoinGlass
At the time of writing, Ether’s price is trading 31% lower than its old all-time high of above $4,800, recorded on Nov. 16, 2021.
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Based on technical chart patterns, Ether has entered an accumulation wave, which could help ETH price surpass $4,400 during the first quarter of 2025, wrote popular crypto analyst TMV in a Dec. 28 X post:
“Wave 5 accumulation [is] happening. Even if it sweeps one more time I will buy. Heavy target $4,400.”
ETH/USD, 1-day chart. Accumulation waves. Source: Tmv
However, the analyst warned that a correction below $2,914 would invalidate the accumulation wave thesis.
Most crypto analysts remain optimistic about Ether’s price trajectory in the first part of 2025.
Ether’s price may be on track for a rally above $4,000 before Jan. 20, when President-elect Donald Trump will take office, a Bybit spokesperson told Cointelegraph.
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This article first appeared at Cointelegraph.com News
